If the Bank of Canada buys government securities from the chartered banks, which of the following transactions take place?
What will be an ideal response?
The demand deposits of chartered banks are unchanged, but their reserves increase.
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Perfect competition forms one extreme of the market structure spectrum.
Answer the following statement true (T) or false (F)
The marginal productivity theory of income distribution states that
A) income distribution is determined by the marginal productivity of the factors of production that individuals own. B) as more and more units of labor are added to a fixed quantity of capital, eventually labor's contribution to a firm's income will decrease. C) factors of production in short supply command higher prices than those available in abundant quantities. D) capital owners receive the bulk of a nation's income because capital-intensive production generates productivity gains.
If the market value of a firm is $6 billion and Tobin's q is equal to 2, then the replacement cost of installed capital must be ________
A) $2 billion B) $3 billion C) $9 billion D) $18 billion
The area between the market price and the supply curve provides a measure of: a. consumer surplus
b. producer surplus. c. consumer surplus plus producer surplus. d. marginal utility.